In 2018 Canadian businesses need to have the ability to accept credit cards to stay competitive. Whether in a brick and mortar store with a credit card terminal or online through a payment gateways Canadians are relying more on their credit card.
However, as credit card use grows so do fraudulent payments which can hurt businesses. When fraudulent credit card payments are made it is often on the business that accepts the payment to absorb the loss. Therefore, it is very important that business owners take steps to spot and stop fraudulent charges before they feel it in their bottom line. Below are tips from Chase that will help business owners prevent chargebacks due to fraudulent purchases and save business owners money in the long run.
Check the ID and signature: When a credit card charge is made in person always check the signature and confirm the customer’s identification. Chargebacks are not always the result of “stolen” credit cards. Sometimes chargebacks are the result of spouses or children making unapproved purchases on another family member’s card. When that family member sees the statement they may call the credit card company and claim it’s a fraudulent payment. Therefore, requiring that photo ID be shown and compared to the name listed on the credit card, especially when large purchases are made, will protect your store against large chargebacks due to stolen cards or from unapproved purchases.
Update Terminals to accept chip-enabled cards: Chip technology is more secure than swiping. With this advanced technology and in addition to regularly updating a terminal’s software with the latest encryption, business owners can help reduce chargebacks based on stolen cards. It was recently discovered that even the Royal Canadian Mounted Police were scammed out of $100,000 when one of the cards they use, which did not have chip technology was cloned in 2016 at a gas station and used to make fraudulent charges.
Use an ID verification service for online transactions: There are several services that will analyze risk and verify identities when online credit card transactions are completed. Some services will match the cardholder’s address to the shipping address or even show the mobile device ID for purchases made on the phone.
These are just some of the steps business owners can take to help spot and prevent fraudulent or risky payments that could lead to chargebacks. While it may be impossible to prevent all types of fraudulent payments implementing these fraud spotting and stopping tips could save businesses thousands of dollars every month.